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By Rimawan Pradiptyo. Posted October 30, 2012
Although it is widely considered to be an ineffective policy, a number of developing countries offer universal fuel subsidies. However, the prolonged implementation of fuel subsidies creates a misallocation of resources as a subsidy targets the fuel rather than the consumer. Consequently, fuel subsidies benefit the affluent more than the poor. A number of countries implement fuel subsidies, including Algeria, the People’s Republic of China, Ecuador, Egypt, Indonesia Iran, Iraq, Malaysia, Nigeria, Russia, Saudi Arabia, Thailand, and Venezuela. Granado et al (2010) reported that in countries that have subsidized fuel, on average, the top income quintile consumed about six times more subsidized fuel than the bottom quintile.
By Stephen Grenville. Posted October 12, 2012
The G20 leaders group achieved several significant examples of international economic cooperation in the first few meetings during the global financial crisis in 2008 and 2009. In the fraught crisis atmosphere, the G20 discussion encouraged bolder fiscal expansion, discouraged trade protectionism, spurred the world’s financial regulators into action to re-write the inadequate rules, and drew attention to the antiquated governance structure of the International Monetary Fund (IMF). With the immediate threat of global depression averted and the eurozone crisis not amenable to a global approach, many commentators observe that more recent meetings have lost a sense of urgency and purpose. This group has been successfully established as the paramount international economic coordination body (taking over that role from the G7 and G8) with a far more representative membership, but with the urgency of the immediate crisis gone, critical attention is focusing on the G20’s composition and agenda.
By Ganeshan Wignaraja. Posted July 10, 2012
The escalating Eurozone crisis and signs of spluttering world growth have put Asia and its manufacturing enterprises into the spotlight again. Part of Asia’s rapid trade-led growth over several decades is associated with production networks and a regional division of labor. An expanding literature suggests that the region’s trade is increasingly made up of growing intraregional trade in intermediate inputs (Athukorala 2011). Production activities are increasingly being geographically fragmented across countries and linked by a dense network of trade in intermediate goods (Baldwin 2008). Small- and medium-sized enterprises (SMEs) are viewed as the backbone of national economic development in many Asian economies, accounting for the majority of firms and a large share of employment (Harvie 2010).
By Tommy Koh. Posted April 10, 2012
The concept of good governance has many aspects. I will focus on two here: corruption and the rule of law. All Asians aspire to live in a society in which they do not have to offer a bribe to anyone in order to obtain what they are entitled to under the law. They want to live in a society in which the policeman, prosecutor and judge are not corrupt. They want to live in a society in which licences and contracts are granted and policies are made in a transparent manner and based on merit and nothing else. Corruption is a cancer eating at the heart of Asia. It is one of the most shameful of Asia’s failings.
By Tommy Koh. Posted March 18, 2012
Eighteen years ago, the World Bank published a landmark book, The East Asian Miracle. The report praised eight Asian economies for their rapid and sustained economic progress and highlighted the fact that they seemed to have evolved a model which combined growth with equity. What is the situation today? Today we have growth, but with much less equity. All our societies have grown more unequal, as measured by the gini coefficient and the ratio of average incomes of the top 20% and the bottom 20%. According to the World Bank’s latest statistics, the gini coefficient for Singapore was 0.48 in 2010. In the case of the People’s Republic of China (PRC), the gini coefficient has risen from around 0.30 in the early 1980s to around 0.47 in 2009. Some social scientists have warned that inequality which exceeds the gini coefficient of 0.4 could lead to social unrest. Even without social unrest, great inequality is a threat to social cohesion and harmony. The current trend in Asia is fundamentally objectionable because it is inconsistent with the very purpose of development which is to benefit all citizens. ADB is, therefore, right to make inclusive growth one of its three agendas in its Strategy 2020 document.
By David I. Steinberg. Posted February 21, 2012
The remarkable, surprising, and extensive reformist policies of the new Republic of the Union of Myanmar have sparked interest throughout the international community. As one of the world’s last bastions of both relative isolation and new opportunities, Myanmar has recently become a magnet to which many are drawn. Governments, international non-profit organizations, and businesses are exploring what they might do in a state marred by intense poverty but possessing abundant natural resources. With a literate and diverse population and a myriad of business opportunities, Myanmar entices with many diverse possibilities for rapid growth and social equity. Hotels are filling up with tourists who now feel more comfortable going to that once exotic land, and embassies may well expand staffs to handle more foreign assistance. Many more international NGOs will join the fifty or so already there, and those that are well established may increase staffs as needs become more visible and access increases.
By Stefan Collignon. Posted February 13, 2012
The crisis in the eurozone is critically important for Asia. At a distinguished speaker seminar at ADBI on 1 December 2011, three eminent European economists examined the crisis and put forward tentative solutions. In this post based on the seminar transcripts, Stefan Collignon outlines his hopes and fears for the single currency. We are in the midst of a very severe crisis. It is not clear that the euro will survive, and if the euro does not survive then the European Union will not survive, and if the EU does not survive than I am not sure how much longer we will have peace in Europe.
By Charles Wyplosz. Posted February 10, 2012
The crisis in the eurozone is critically important for Asia. At a distinguished speaker seminar at ADBI on 1 December 2011, three eminent European economists examined the crisis and put forward tentative solutions. In a post based on the seminar transcripts, one of the speakers, Charles Wyplosz, identifies some of the mistakes that have been made in the response to the crisis and puts forward three scenarios for its resolution. Since late 2009 the European debt crisis has worsened because of the wrong policy responses by European politicians. Some progress has been made but we are not yet there. We have a historic disaster with global implications on the way and unless a miracle happens I am pretty pessimistic about the future.
By Andrei Lankov. Posted January 27, 2012
The death of North Korea’s Marshal Kim Jong Il, the Lodestar of the 21st century, was sudden but not unexpected. The Dear Leader, as he was usually called, suffered a stroke in 2008, and aged significantly after that. Soon after the stroke, Kim Jong Il began to prepare for his eventual demise. In 2010 his third son, 28-year-old Kim Jong Un, was made a four-star general and soon began to be featured by the official media as a young genius of leadership. Simultaneously, Kim Jong Il’s sister and her husband (both in their mid-60s), were promoted to top government positions—obviously on the assumption that they would act as regents for the young and inexperienced dictator should Kim Jong Il die soon.
By John Sidel. Posted January 22, 2012
Today, ordinary people in villages and towns in many parts of Asia enjoy more freedom, choice and power than ever before. This is in large part due to the expansion of markets and elections to encompass growing numbers of consumers and citizens, along with the devolution of state power into local hands. Against this backdrop, considerable interest has focused on the role of “local elites” in Asia: “bosses and dynasties” in the Philippines, “goondas” in India, “village emperors and local mandarins” in Viet Nam and PRC. By maintaining monopolistic, authoritarian control over markets, state resources and votes, these local elites are seen to be blocking the emancipatory effects of globalization, democracy and decentralization.
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